Acquisitions weigh down Inabox growth
- 28 August, 2017 11:08
Inabox Group (ASX:IAB) has posted net profit after tax (NPAT) of $100,000 due to $1 million costs related to the acquisition of Hostworks and Logic Communications and the sale of HCS and previous year tax adjustments.
The company’s results for the full year ended 30 June 2017 revealed earnings before interest, tax, depreciation and amortisation (EBITDA) of $4.6 million. The 16 per cent decline is due to transaction and restructuring costs of $1.5 million also related to the company’s acquisitions and the sale of HCS.
In the financial report to shareholders, Inabox informed that the $1.5 million costs were primarily related to redundancy costs associated with both acquisitions as well as other costs.
The underlying EBITDA, however, was $6.1 million, or 12 per cent growth from the previous year.
Inabox revenue was up by 2 percent, posting $90.1 million.
The company attributed the slow increase in the revenue to the loss of a major customer and the divestment of two unprofitable customers.
Hostworks and Logic Communications contributed $7.4 million revenue over a five month period. According to the company, it is moving away from traditional telco services and into higher margin, service and cloud-based offerings.
The Hostworks acquisition will help as Inabox leverages its cloud-infrastructure and develops additional cloud products for the SME market.
Inabox announced that it added new direct and indirect clients with Telstra 4G Wholesale and NBN offerings. The Telstra 4G services were announced in August 2016, making Inabox the first telco aggregator to offer a wholesale channel mobile product using the Telstra mobile network.
Inabox launched its Office 365 Fast Lane product in Australia, in June 2017, with the aim to help its internet service providers (ISPs) bring Microsoft's cloud product to market.
“What this means is that Inabox service providers without the technical expertise and knowledge of cloud products will not fall behind; Inabox will provide all the support necessary to ensure businesses can provide a complete 365 Fast Lane solution to their customers, today,” Inabox cloud general manager, David Swinton, said at the time of the announcement.